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Two of the biggest companies in the wind turbine industry, General Electric and Siemens Energy, both shared disquieting news about their businesses this week. GE disclosed in its third quarter earnings that its offshore wind business had $1 billion in losses so far this year, while Siemens had to respond to reports it was seeking a bailout from the German government. Both GE and Siemens Energy sell turbines, while the latter also services wind farms.
The news adds up to a bleak picture for the wind industry, especially offshore, where developers are having problems keeping existing projects on budget and their suppliers aren’t making money either.
“Next year, we expect offshore will have similar losses, but substantially improved cash performance,” GE’s chief executive Larry Culp said in a call with analysts on Tuesday.
“Offshore will be difficult. That’s what’s behind those underlying numbers for this year and for next,” Culp said. “We know the industry is ready for a reset … We think we can make a much better business with offshore wind, but we’re staring at some challenges that we need to address here in the fourth quarter and in ‘24 for sure.” The company described both higher costs for turbine production as well slowed down deliveries. It also warned that producing its new, larger turbines “remains a key challenge that could result in future losses.”
Across the Atlantic, Siemens Energy was forced Thursday to respond to reports in the German media that it was looking for government support to back up its ailing wind business. The company said that “In light of recent media reports regarding talks with the German government,” its financial results for 2023 would show that its traditional power plant and transmission business was “expected to continue [its] excellent performance,” while the wind business “is working through the quality issues and is addressing offshore ramp up challenges.”
Siemens Energy said that “for the time-being” the wind business is “not concluding new contracts for certain onshore platforms and is applying strict selectivity in the offshore business,” and that revenue is expected to be lower than expected next year as well, while losses will be higher.
Earlier this year, Siemens Energy said that there had been a “substantial increase in failure rates of wind turbine components,” for its onshore business that would incur losses of €1 billion to address, a number that ballooned to €4.5 billion. It also said it was “experience[ing] ramp up challenges in offshore."
In short, the company has turbines that malfunction and contracts that are not profitable, weighing down the entire business.
Shares in the energy company were down more than a third today in Germany.
Reuters and other publications reported earlier Thursday that the company was in talks with the German government about financial support. The company said in its statement that it was “evaluating various measures to strengthen the balance sheet of Siemens Energy and is in preliminary talks with different stakeholders, including banking partners and the German government, to ensure access to an increasing volume of guarantees necessary to facilitate the anticipated strong growth.” One publication, WirtschaftsWoche, put the figure that Siemens Energy was after at €15 billion.
Siemens Energy spun off from its parent Siemens AG in 2020, combining its gas turbines and transmission business into one, along with a two-thirds stake in Siemens Gamesa, the wind business. Earlier this year, Siemens Energy acquired the rest of the wind business. The company’s total market value has fallen by about two-thirds since its stock market debut.
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“I believe the tariff on copper — we’re going to make it 50%.”
President Trump announced Tuesday during a cabinet meeting that he plans to impose a hefty tax on U.S. copper imports.
“I believe the tariff on copper — we’re going to make it 50%,” he told reporters.
Copper traders and producers have anticipated tariffs on copper since Trump announced in February that his administration would investigate the national security implications of copper imports, calling the metal an “essential material for national security, economic strength, and industrial resilience.”
Trump has already imposed tariffs for similarly strategically and economically important metals such as steel and aluminum. The process for imposing these tariffs under section 232 of the Trade Expansion Act of 1962 involves a finding by the Secretary of Commerce that the product being tariffed is essential to national security, and thus that the United States should be able to supply it on its own.
Copper has been referred to as the “metal of electrification” because of its centrality to a broad array of electrical technologies, including transmission lines, batteries, and electric motors. Electric vehicles contain around 180 pounds of copper on average. “Copper, scrap copper, and copper’s derivative products play a vital role in defense applications, infrastructure, and emerging technologies, including clean energy, electric vehicles, and advanced electronics,” the White House said in February.
Copper prices had risen around 25% this year through Monday. Prices for copper futures jumped by as much as 17% after the tariff announcement and are currently trading at around $5.50 a pound.
The tariffs, when implemented, could provide renewed impetus to expand copper mining in the United States. But tariffs can happen in a matter of months. A copper mine takes years to open — and that’s if investors decide to put the money toward the project in the first place. Congress took a swipe at the electric vehicle market in the U.S. last week, extinguishing subsidies for both consumers and manufacturers as part of the One Big Beautiful Bill Act. That will undoubtedly shrink domestic demand for EV inputs like copper, which could make investors nervous about sinking years and dollars into new or expanded copper mines.
Even if the Trump administration succeeds in its efforts to accelerate permitting for and construction of new copper mines, the copper will need to be smelted and refined before it can be used, and China dominates the copper smelting and refining industry.
The U.S. produced just over 1.1 million tons of copper in 2023, with 850,000 tons being mined from ore and the balance recycled from scrap, according to United States Geological Survey data. It imported almost 900,000 tons.
With the prospect of tariffs driving up prices for domestically mined ore, the immediate beneficiaries are those who already have mines. Shares in Freeport-McMoRan, which operates seven copper mines in Arizona and New Mexico, were up over 4.5% in afternoon trading Tuesday.
“We had enough assurance that the president was going to deal with them.”
A member of the House Freedom Caucus said Wednesday that he voted to advance President Trump’s “big, beautiful bill” after receiving assurances that Trump would “deal” with the Inflation Reduction Act’s clean energy tax credits – raising the specter that Trump could try to go further than the megabill to stop usage of the credits.
Representative Ralph Norman, a Republican of North Carolina, said that while IRA tax credits were once a sticking point for him, after meeting with Trump “we had enough assurance that the president was going to deal with them in his own way,” he told Eric Garcia, the Washington bureau chief of The Independent. Norman specifically cited tax credits for wind and solar energy projects, which the Senate version would phase out more slowly than House Republicans had wanted.
It’s not entirely clear what the president could do to unilaterally “deal with” tax credits already codified into law. Norman declined to answer direct questions from reporters about whether GOP holdouts like himself were seeking an executive order on the matter. But another Republican holdout on the bill, Representative Chip Roy of Texas, told reporters Wednesday that his vote was also conditional on blocking IRA “subsidies.”
“If the subsidies will flow, we’re not gonna be able to get there. If the subsidies are not gonna flow, then there might be a path," he said, according to Jake Sherman of Punchbowl News.
As of publication, Roy has still not voted on the rule that would allow the bill to proceed to the floor — one of only eight Republicans yet to formally weigh in. House Speaker Mike Johnson says he’ll, “keep the vote open for as long as it takes,” as President Trump aims to sign the giant tax package by the July 4th holiday. Norman voted to let the bill proceed to debate, and will reportedly now vote yes on it too.
Earlier Wednesday, Norman said he was “getting a handle on” whether his various misgivings could be handled by Trump via executive orders or through promises of future legislation. According to CNN, the congressman later said, “We got clarification on what’s going to be enforced. We got clarification on how the IRAs were going to be dealt with. We got clarification on the tax cuts — and still we’ll be meeting tomorrow on the specifics of it.”
Neither Norman nor Roy’s press offices responded to a request for comment.
The state’s senior senator, Thom Tillis, has been vocal about the need to maintain clean energy tax credits.
The majority of voters in North Carolina want Congress to leave the Inflation Reduction Act well enough alone, a new poll from Data for Progress finds.
The survey, which asked North Carolina voters specifically about the clean energy and climate provisions in the bill, presented respondents with a choice between two statements: “The IRA should be repealed by Congress” and “The IRA should be kept in place by Congress.” (“Don’t know” was also an option.)
The responses from voters broke down predictably along party lines, with 71% of Democrats preferring to keep the IRA in place compared to just 31% of Republicans, with half of independent voters in favor of keeping the climate law. Overall, half of North Carolina voters surveyed wanted the IRA to stick around, compared to 37% who’d rather see it go — a significant spread for a state that, prior to the passage of the climate law, was home to little in the way of clean energy development.
But North Carolina now has a lot to lose with the potential repeal of the Inflation Reduction Act, as my colleague Emily Pontecorvo has pointed out. The IRA brought more than 17,000 jobs to the state, per Climate Power, along with $20 billion in investment spread out over 34 clean energy projects. Electric vehicle and charging manufacturers in particular have flocked to the state, with Toyota investing $13.9 billion in its Liberty EV battery manufacturing facility, which opened this past April.
North Carolina Senator Thom Tillis was one of the four co-authors of a letter sent to Majority Leader John Thune in April advocating for the preservation of the law. Together, they wrote that gutting the IRA’s tax credits “would create uncertainty, jeopardizing capital allocation, long-term project planning, and job creation in the energy sector and across our broader economy.” It seems that the majority of North Carolina voters are aligned with their senator — which is lucky for him, as he’s up for reelection in 2026.